Home Business Top 10 Wholesale Liquidation companies in The USA (2020)

Top 10 Wholesale Liquidation companies in The USA (2020)

Major chain-stores and online brands tend to stock their own inventory. This allows them to dispatch it as soon as an order is received from a customer. Therefore, supermarket chains like Walmart and online retailers like Amazon purchase goods (or inventory) in bulk from manufactures and keep it in their warehouses.

Depending on the demand for some of the goods, these retailers choose to sell off the excess inventory that they have to make space for other goods. The space at warehouses has a cost attached to it so these companies prefer to optimize it with inventory thats fast-moving.

What happens to the excess inventory then? The companies cannot, of course, return it to the manufacturers. What do they do then?

This is where best wholesale liquidation companies step in. What these companies do is purchase this excess inventory from the large retail chains and website for a discount. As a result, they’re able to sell off these goods at a discounted rate to their customers.

These customers could be small businesses or mom-and-pop stores. Buying from one of the top wholesale liquidators allows them to get these products cheaper than their market price.

When purchasing from retail liquidation sites, buyers aren’t required to have a resale certificate. As a result, it makes it very cheap and convenient for small businesses and stores to purchase inventory from liquidators and that allows them higher profit margins on resale.

Sometimes, a large chain store might decide to shut down or relocate. In some cases, they also clear out their older seasonal inventory in order to make space for new products. This happens, for example, after Christmas or Black Friday where stores tend to clear out some of their inventory after seeing the response of customers and tracking what sells best.

There are companies known as closeout liquidation companies that purchase this inventory from the big retailers and sell them to small business owners and stores at wholesale prices.

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Purchasing your goods from a wholesale liquidation company can, therefore, help your business save a lot of money. Moreover, you can also be assured that the goods you’re purchasing are legitimate and their quality is assured.

Here’s a list of the top 10 wholesale liquidation companies in 2020:

#1 QuickLotz.com

QuickLotz Logo

4.5 rating

Rating: 4.5 out of 5
Read QuickLotz’s Customer Reviews

Headquartered in Rutherfordton, NC, and with warehouses in Laredo & Arlington TX, Quicklotz is by far the best wholesale liquidation company of 2020.

The main reason behind the rising popularity of Quicklotz is that they offer a massive and exclusive inventory that cannot be found with other wholesalers. That along with their high level of customer support make it an extremely popular option for small businesses and retailers.

Quicklotz also has a unique concept: rather than run auctions, they sell the merchandise at set prices, either by the truckload or pallet lots. The smaller lots listed on Quicklotz come with free nationwide shipping and you always have the option to pickup the goods in person or with your own freight carrier from their warehouse in Rutherfordton, NC.

The other strong point in favor of Quicklotz is that they have exclusive contracts from retailers that the other companies dont, this means you get everything at the lowest liquidations prices. The diversity of retailers ensures that the merchandise available is amongst the best available in the market.

Unlike other online sites, Quicklotz also offers the chance for buyers to come and personally see the goods before purchasing. For a lot of retailers, this is important as it gives them the option to touch and inspect the merchandise that they wish to purchase.

#2 Bulq.com bulq Logo

Read Bulq’s Customer reviews

Based out of Washington D.C., Bulq is owned by Optoro: a reverse logistics company. Founded in a small garage in 2004, Bulq has grown on to become one of the top names in the wholesale liquidation industry.

The principal promise of Bulq is that the customer will receive the exact goods that they ordered for. The company allows online credit card payments from the convenience of your house and ensures doorstep deliveries. Moreover, Bulq also promises a 98%+ accuracy on manifests. In case this accuracy is not met, the company promises to refund the difference in price.

For customers nationwide, Bulq offers a flat-rate shipping to absolutely anywhere in the contiguous United States. This ensures that you can conveniently place your orders from the comfort of your home without needing to travel anywhere.

#3 Liquidation.com Liquidation Logo

Read Liquidation’s Customer Reviews

This website is the online platform of the Washington-based company Liquidity Services. Liquidation.com claims to have over 3 million clients spread across 200 countries around the world. Since the holding company is involved in liquidations as its core business, the website promises to ensure some of the cheapest rates for its buyers.

Liquidation.com has both open as well as sealed bids. On the website, the goods are listed with an expiry date by which a bid needs to be made. For open bids, you also have the option of seeing what the current highest bid is. However, with sealed bids, all you can do is try your luck and wait.

The company offers a diverse range of goods including jewelry, fashion apparels, computers and periphals, along with consumer electronics goods.

#4 Bstock.com BStock Logo

Read Bstock’s Customer Reviews

Headquartered in Redwood City, CA, Bstock works together with 8 of the top 10 retailer chains in order to get a diverse range of liquidated merchandise for its buyers.

The company positions itself as a technology-driven online marketplace for bulk purchases of liquidated goods. The key USP of Bstock is its proprietary software that can be easily adopted by buyers.

This software platform allows buyers to track their orders, scour the marketplace for the best deals, engage with dedicated customer support teams and to also analyze their potential profits and savings.

Bstock claims to have successfully listed over 100,000 auctions online since its inception. The fact that the company promises retails chains a recovery rate of 30%-80% automatically means that buyers can be assured of having access to an extensive and comprehensive inventory.

#5 Mid Tenn Wholesale

Mid Tenn Wholesale Logo

Based in Gallatin Tennessee, Mid Tenn is a reverse logistics wholesaler who maintains many high-level relationships with retailers. Originally an eBay seller, the founders decided that their success selling online could be paired with real-world relationships. By doing so they are able to offer many exclusive truckloads of merchandise to the market. Operating an email signup system, most if not all of the merchandise offered by Mid Tenn is provided on an email list basis.

This confidential approach allows them to provide the lowest prices on items that the retailer wants to be kept secret. In the reverse logistics business, there are often offerings containing highly branded goods, this leads to retailers like big-box chains wanting to keep quiet about the discounts. This is generally to protect the brand integrity of the items sold, but for you, it provides an opening to save thousands of dollars.

From general merchandise to sporting goods, furniture and more; they are a solid option for the buyer who has a bit more to spend but in the process gets the best deal possible.

#6 Merchandize Liquidators

 

Merchandize Liquidators

Located in Miami Gardens, FL, Merchandize Liquidators has been in the wholesale industry since early 2003. By working directly with manufacturers and large-scale retailers (clothing, general merchandise, HBA) this company established itself as a dominant player in the space.
Catering to eBay sellers, Amazon sellers, and small retail stores; they meet the needs of wholesale buyers who have a low to mid-range budget for purchasing. Things you can expect to find on their site include overstocks, surplus, salvage goods and refurbished offerings. Even earning the right to Inc.Magazines as “fastest growing companies” for the USA in 2012.

While they originally came to light as a brokerage firm for buyers and private sellers, they decided to expand in 2005 and opened their new warehouse in the city of Hallandale, FL.

The user-friendly site has a wide range of categories to choose from, with loads in many sizes it’s a great option for resellers who are just starting out and want to test the waters without risking a full truckload purchase.

#7 Continental Wholesale

Continental Wholesale Logo

 

Headquartered in Hampton, IA, Continental Wholesale is yet again another solid option for your wholesale needs. Ranging from Groceries, Sporting Goods, Toys, Rugs, Hardware and more; their offerings tend to touch every category. Unlike many of the other competitors on this list, Continental provides small lots (~$300-$500) all the way up to huge truckloads or half truckloads.

The big benefit with their business model is the “ease of purchase”, being much like an eBay listing the website boasts a user-friendly interface with a wide category list. Allowing you to click and view each
individual product offering, you can easily build a plan of action regarding what merchandise words best
for you.

Some of the items you can expect to find are LG Fridges, CVS goods, Walmart goods, “As Seen On TV”
products and more.

The quality can vary from scratch and dent all the way to full salvage, however, the price can be rock bottom for items in the lower grade tiers. Overall Continental proves itself to be a formidable contender, catering to the whole spectrum of buyers they are certainly one to check out.

#8 Amlinc.com AML Logo

Read Amlinc’s Customer Reviews

Based in Alabama, amlinc is operated by a company called the American Merchandise Liquidators. With a business track record of over 25 years, Amlinc primarily works with large buyers who purchase by the truckload.

The categories of goods offered include home wares, furniture, and toys along with the standard stuff offered by liquidation brands.

The biggest drawback of this company is the lack of being able to make purchases online. Therefore, as a buyer, your only option is to visit one of their warehouses or corporate offices. This is in stark contrast to major liquidation companies which allow you to complete the entire bidding or purchasing process online.

The one good offering by Amlinc, however, is that the company provides financing. All you need to do is fill up a little form on their website which immediately shows you your credit rating. Based on that, Amlinc provides buyers with attractive financing options so that a shortage of cash flow doesn’t hinder your ability to stock up on the inventory thats necessary for your business.

Amlinc also has a special section for online/dotcom returns which deals exclusively with goods liquidated from large online retailers.

#9 GencoMarketplace.com Genco Marketplace Logo

 Read GencoMarketplace’s Customer Reviews

As the name suggests, GencoMarketplace is a division of GENCO: the logistics company which is now owned by FedEx under the rebranded name FedEx Supply Chain. The platform has traditionally been targeted towards large retail chains to help them liquidate their returns inventory and to recover their costs. Over the years, the GencoMarketplace works together with small businesses and stores to offload this inventory are a discounted price.

Thanks to its legacy, GencoMarketplace is efficient at optimizing inventory and logistics. This ensures that buyers get a real-time view of the available stock and can enjoy easy and convenient shipping. Their customer base includes large businesses as well as independent retailers who resell the stock on websites like eBay.

GencoMarketplace also offers an Android as well as iOS app to help buyers conduction their bidding in real-time and to see the entire inventory of goods on offer. Along with electronics and consumer apparel, GencoMarketplace also maintains a large inventory of liquidated sports goods and merchandise.

#10 Viatrading.com viatrading logo

Read Viatrading’s Customer Reviews

Via trading sources the bulk of its goods from wholesale overstocks as well customers returns. Often, products are returned by customers because they have second thoughts or for personal reasons (such as “Its not my favorite color”). Such goods are in perfect condition, and thanks to companies like Via Trading, you can purchase them at discounted prices.

Based out of Los Angeles, CA, Via Trading claims to have fulfilled retail value liquidations of over $5bn since its inception. Via Trading also lays stress on working with small business owners such as those who set up at flea markets. Indeed, the company is even a preferred supplier of the National Flea Market Association (NFMA).

The significant USPs of this company include no minimum purchase restrictions as well as a dedicated online buyer platform that helps you with all your invoicing requirements while letting you calculate your potential profits and savings on shipping.

FAQs

What types of lots can I buy?
If you are just starting out into the liquidation retailing business then the units might be confusing. Of course, as you go on with the business and the number of years you put in increases this will be second nature to you. Since you are buying from a liquidation wholesaler you will be buying products in bulk. . The units will be either in truckloads, pallets, cases or boxes. You do understand the concepts of boxes ( I assume) so let’s take a look at pallets and truckloads. Look, most of the wholesalers you make a deal with will be dealing in pallets. A pallet is basically treated as a sort of unit load in terms of storage. A pallet may contain a lot of products packed into it. For example, if you are buying a clothing pallet from a wholesaler it may contain 20-25 items in it. If you are a bigger business and have a steady flow of customers then you can go for a truckload. Which usually includes around 20-30 pallets. But don’t go directly to the big load because it is cheaper. Crunch your numbers, do some math before you buy.
How do liquidation companies offer such low prices?
It’s easy. Things cost more if they sit on shelves rather than being sold. This has to do with increased demands and lots of traffic in the big stores like Amazon, eBay or Walmart. Every day hundreds of thousands of customers buy things from these e-commerce giants. So, they need to stock the products to the brim. But sometimes this leads to overstocking. Also, the increased demands mean that more mistakes are being made and more returns are being filed. A survey says that 10% of all the products bought are returned. So, yeah lots of stuff comes back. Many of these stuff goes back on shelves other are sold off. Now, the market is tough and competitive so companies want to catch the latest trends and stockpile on that. Which is why they need to free the storage space and this is where the liquidation companies come in. The bid for these stocks or some even has special deals with these big companies. These companies sell the overstocks, shelf pulls or returns to the liquidation wholesalers at much less price because space is very important and is of a lot of value. To sit on these products waiting for them to sale will be a loss. So, they sell it at a very low price.
What kind of shipping is offered?
Look, depending on the company you choose to buy your truckload or pallet from the shipping arrangements will differ. But most companies follow a general set of shipping arrangements. Before you finalize your deal it is suggested that you look into the shipping information about the company. What rates they are providing? Do they ship overseas? Many times if your order isn’t big maybe just a pallet then they are shipped to you by couriers like FedEx. Also, Less than Load carriers or LTL carriers are used to ship your orders. But if you have a truckload or more then a full shipping container or truck can deliver you your order. The shipping rates will be calculated accordingly. But if you live near the warehouse of the company and think you can arrange for your own pickup then many companies do give you that option too. Also, if you are a merchant who does not have a warehouse with a dock then a lift gate delivery is possible.
What is the difference between a broker and a direct contract holder?
A broker is a sort of a middle man who gets a commission for every transaction that happens through them between a business and consumer. Since the question is concerning liquidation business let’s try to approach it with that mindset. A broker will not be viable for you since they just tend to make sure that their business does a huge profit. They simply try to resell the products i.e. the truckloads and pallets. They mark up the price and then make a deal with the buyers and earn a lot of profit. This might not be fruitful for your business as your profit margin will drastically decrease. On the other hand, a direct contract holder has a direct relationship with the businesses and gets the products at a lower price. They directly work with retailers to ensure that they pay a good price for the truckloads and pallets without cutting deep into their profits. The direct contract holders will provide you with the highest quality merchandise at a very low price so that you can start generating sweet revenue and earn some profit.
What is the difference between manifested and unmanifested loads?
As you get into the liquidation retailing business you might end up hearing terms like manifested loads or unmanifested or non-manifested loads. This might be very confusing for new entrepreneurs. So, let’s see what is the difference between these two terms and which one should you buy. Manifested loads are basically shipments of products that you purchase from a company and get a list of all the items that have been delivered to you via the shipment. You know the details of all the items that you have purchased. Non-manifested loads basically include shipments of truckloads or pallets from companies where you do not get a lost of items delivered to you. So, yeah you don’t have the exact idea what you have bought. You can expect what you will get while surfing the liquidation wholesaler’s website and get an idea about what the products are but there is no way to knowing exactly what you will be getting. Non-manifested loads are cheaper than manifested loads as there is a certain uncertainty involved. So, you might be thinking that you should go for manifested loads as it wi be cheaper and you will know gets you are getting into beforehand. But that is not the case. First of all unmanifested loads are a lot cheaper and also you get a good mix of items in them. This is because the liquidation companies buy truckloads of products from the big firms and they don’t really have much control over what they get. Don’t worry the products are of good quality. Let’s say you are buying a clothing or apparel pallet. If you get a good mix of brand, style, and size for a much lower rate then isn’t it more profitable. But of course, it will depend from business to business.
Will liquidation items be damaged?
To understand the answer to this question you have to go through the FAQ 2 which talks about what constitutes liquidation items. These items are basically shelf-pulls, overstocks and customer returns and most of them are in brand new condition with the original packaging. The doubt that people have about this item is very legit as it is logical to think that since the companies are selling their products to liquidation companies for such low prices. There must be something wrong, right? But go through FAQ 2 to understand why the prices are so low. Now, let’s get to customer returns. Many people think that the items returned by customers are defective and the companies sell them at a lower price because of that but that is not the case. Customers return items for various reasons and one of the reason is that the item is defective but there are other reasons which are more likely to make a customer return the product. Maybe the size of the clothing they bought does not fit. The colour does not look as they thought it would offline. Many of these returns are gift items and customers return this because they might already have what they were gifted. The only way you can ensure that you don’t get short-changed and stuck with defective products is to work with a reputed and good supplier. Check out customer testimonials and buy a small unit first to see if the company is helping you make a profit on retailing.
How do I pay for liquidation merchandise?
The payment options for liquidation merchandise do vary from company to company but in general, they do remain the same. The payment options are similar to other online e-commerce businesses. You can pay via debit card or credit card. You can also use net banking to securely conduct the transaction and procure your purchase. A PayPal account can also be used to make payments.
How much money should I invest when starting out?
Before you go through this answer keep one thing in mind- It is not going to make you rich overnight. You have to put in a considerable initial investment to start your business and then pay off all your expenses before you start making a profit. But yeah once you have started making some profit you can experiment with your purchases and increase your profit by a lot. Some retailers even generate double the revenue of their investment. So, how should you put in? There are certain costs that you need to keep in mind to start the business. You have to get your business license first and the cost may vary from state to state. But you can look in the range of 100-200 bucks to set you up. Next, you have to decide on whether you want to have a physical brick and mortar store or want to work from home online. The cost will vary according to that. Next is warehousing which will cost based on how big your pallet is. Once you have decided these and some other expenses then you can focus on the truckload or pallet that you will be buying from the wholesaler. The bigger the size of the lot you buy the less is the price per item and more is the profit you stand to make. But if you are just starting out buying a whole lot of products might be detrimental. Check the descriptions of the pallet and calculate the expected profit that you can make and consider your expenses too.
How can I trust a liquidation company?
It is very legit and logical to doubt the liquidation suppliers since you are spending lots of dollars to buy products from them. If you don’t end up making a good profit then what is the use of buying truckloads or pallets of products. So, it is very important to find a good liquidation company and develop your trust with them. Also, if you strike a balance with one of the companies and make a good profit then you can do business with them for a long time. So, before you make a deal with any company be thorough with your background checks. The first thing to do is to Google the company and check out their website. Go through the interface and check how easy it is to buy products from them. Next, check the customer testimonials and reviews of the company. Don’t just go through the positive experiences, go through the negative ones too. This will give you an overall idea about the company. If possible try to visit the company physically and meet the owners. This will help you get to know them better and help alleviate any doubts that you might have had. The customer service and support will be very important while you conduct your business with the company so do discuss about that. Also, try to find other retailers like yourself who are doing business with the company and listen to their advice.
What kind of paperwork do I need in order to buy in bulk?
Look, getting into retailing of liquidation merchandise or goods can be very lucrative but you do have to be legit. There are a few legal documents that you need to fill and procure to become a legal retailer. Since you are buying in bulk and resealing you will need a resale certificate before suppliers or liquidation wholesalers start selling you stuff. This may vary from state to state. Check the law about reselling in your state and get a certificate issued. Also, you first need a tax identification number or employee identification number from the IRS and use that to set up your bank account for the business transactions. Next is the state tax license. Look, this might seem like a lot of work but you have to follow the rules and regulations so that you don’t get into any trouble. Also, many of these permits and licenses can be applied for online from the comfort of your home. Next, you need to register your business name and the type of business you are going to conduct. Once you have all the legal documents you need to find a wholesaler. The wholesaler might make you fill a buyer form before selling you the truckloads or pallets.

Wholesale liquidation companies

, therefore, make it very easy and cost-affordable for small retailers to source their inventory. For absolutely zero effort, you get brand name goods on these platforms at wholesale rates.

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Especially, with websites like QuickLotz, you not only have the option of picking up goods for cheaper but can also choose to have the “touch and feel” element by visiting their warehouse. With cheap shipping and the option of online auctions, wholesale liquidation companies are indeed a boon to small retailers and independent stores.
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